Govt approves interest subvention scheme for farmers

The government has approved the implementation of 2 per cent interest subvention scheme for the year 2015-16 for short term crop loans upto Rs 3 lakhs, the Reserve Bank of India said.

"This 2 per cent interest subvention will be calculated on the crop loan amount from the date of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer... subject to a maximum period of one year," RBI said in a notification on Thursday.

Moreover, an additional interest subvention of 3 per cent per annum will also be available to the farmers repaying the loan promptly.

The benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further period of up to six months post-harvest on the same rate as available to crop loan.

"This also implies that the farmers paying promptly would get short term crop loans @4 per cent per annum during the year 2015-16," RBI said. ..

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